Trash it. I can see how you think since you're at 39% occupancy (BTW the assessment date is January 1st of each year) would help you, but it won't. They will just place a value on your property based on their comparable properties.
When you do get your Value Notice, probably in May, protest the value, unless you feel the value is reasonable or lower than you believe it should be. If so, do nothing and consider yourself lucky. If you do file a protest, the Central Appraisal District (CAD) will contact you wanting to schedule an informal meeting with an appraiser. I wouldn't bother with that, just go to the Appraisal Review Board (ARB). Because if you do go to an informal meeting, you won't get what you want and they will tell you, "I can't lower it to what you want, but the ARB can." Which is true.
You mentioned the list does not account for all expenses, this will be important at the ARB hearing. There will be 2 discrepancies between you and the CAD:
Expenses. The CAD will want to exclude certain expenses that you will want to include.
Capitalization Rate. The CAD will want to use a lower Cape Rate than you think is appropriate.
They will use their market data and certain industry appraisal manuals to support their conclusions. Simply keep telling the ARB that you're presenting actual data and explain why an investor would consider all the expenses and Cape Rate you're claiming in valuating your facility.
Remember this formula:
Rate x Value
This is a 3-way formula, but since value is your goal, Income divided by Rate equals value.
If you feel uncomfortable going to the ARB, you can always hire a Property Tax Consultant based on contingency. You shouldn't have to agree to more than 33% contingency.
There's probably information on the TSSA site that explains this more thoroughly.
I hope I'm stating the obvious, just wanted to cover everything.
Sandy Beach Boat *RV* Self Storage
Sent: 01-06-2023 09:39 AM
From: Ryan Stalling
Subject: COUNTY APPRAISER CALLED ASKING QUESTIONS - What do other owners share (or not share)?
Hello all. I received a call from our County Appraisal office asking for information about our facility followed up by an email. The appraiser's response in email was this...
"I essentially am looking for a breakdown of the size, number and rent of your various units, as well as occupancy and whether they are climate controlled. You will also see a section for expenses. Any of this information is very helpful in accurately appraising your property. But if you don't have all the information requested, just please list what you do have."
His response to my question on how we are valued.
"Facilities like yours are valued on the "income approach". It is based on market rent and market expenses…and market cap rate. Most of that is done by analyzing these surveys and market analysis on cap rates. So we ask all of these type of businesses to supply as much information as possible so that we can make accurate decisions."
For your owners, is this common (appraisal office calling to ask for all this information)? I have received advise of "just ignore the request" BUT we did just open in September 2022. We are at about 39% occupancy and need about 50-53% to break even. I am wondering if it would, in fact, be beneficial to provide this information, given we are still running in the negative (growing but not making money yet), in terms of valuing us for tax purposes.
Any advise on how much or not to share would be appreciated. Example...there is a place to list certain expenses. His list, with blank spaces to fill in, does NOT account for all expenses our business has so should I provide a separate, all-inclusive list to show true cost of operating expenses versus what we are making at this point in revenue?
Steel Roots Storage LLC